Technically, you can take a joint mortgage with anyone, such as friends, family, siblings or parents. But it’s most common for couples looking to purchase property.
However, things can get tricky if you’re an unmarried couple with a joint mortgage and are now considering splitting up.
As your relationship nears its end, couples are usually impatient to understand their legal rights and process things through the correct channels.
At the same time, this can be emotionally and financially harrowing. So, a bit of information never hurts.
That’s precisely what we’re trying to offer in this article, where we’ll discuss the options for a joint mortgage between non-married couples splitting up.
Let’s get started.
Table of Contents
What Is The Legal Position When A Couple With A Joint Mortgage Split Up And Are Not Married?
Separating from your partner can be one of the most challenging life experiences, even if you’re not married.
You have to deal with the emotional toll of the problem on one hand, while you must also take care of the financial side of things. If you have children, you and your partner must also make arrangements for their future.
If both of you have a home with a joint mortgage, you’ll have to understand the legalities. In case both you and your partner are registered as the legal owners of the property, your rights over the property are equal.
Neither you nor your partner can force the other to leave the property and cannot take any other steps, such as selling the house without the others consent.
According to English law, unmarried couples living together are classified as cohabitees.
This means their obligations and rights are similar to those living in a home jointly owned by a family member or friend.
As mentioned above, when you take a joint mortgage on the home, you and your ex are equally liable to repay the loan.
Therefore, even if you split up, you must continue with your mortgage repayments together. However, this is not the only option, as we’ll explore in the next section.
Other Options for Joint Mortgage Split Up Not Married
When you and your partner split up, you might want to avoid continuing with the mortgage repayments together. In this case, there are a few options to consider, as given below.
1. Selling The Property
This is usually the easiest option: sell the property and use the proceeds to repay the loan in full. Most couples opt for this alternative because it is clean and relatively hassle-free.
Any money left over after repaying the mortgage can be mutually divided between the couple to ensure financial safety.
2. Leaving But Retaining A Financial Stake
In this option, one of the partners decides to move out of the property but doesn’t give up their stake. If and when the property is sold, that partner must be provided a share of the proceeds. In this case, the one moving out of the property will still be responsible for the mortgage.
3. Equity Transfer
Here, one partner essentially buys out the other partner’s stake in the property. However, the partner who wants to shoulder the mortgage alone must prove they can afford to repay it and meet the criteria for a new re mortgage application.
The conveyancing solicitor will complete the work required in relation to the transfer of equity.
Steps To Protect Your Interests
When you’re trying to navigate a joint mortgage split without marriage, careful planning is required to ensure that the interests of both parties involved are preserved.
The following are some of the essential steps that you can take.
1. Review Ownership Documents And Agreements
This is a significant step, and you should always check the property’s title deeds to confirm the ownership pattern.
If you have a cohabitation agreement in place, review it to understand your rights and obligations during the split.
2. Get Professional Help
Consider taking the help of a solicitor and a financial advisor to guide you. Professional help can allow you to make decisions aligned with the law and protect your interests.
3. Keep The Lender Informed
This is a vital step, as the lender can guide you regarding the necessary steps to take during the split.
This way, you can minimise risks and ensure a smoother resolution of any disputes that may arise during the separation.
Frequently Asked Questions (FAQs)
1. Can one of us leave the mortgage without the other’s consent?
No, neither you nor your ex can remove anyone’s name from the mortgage agreement without the other’s consent and also that of the lender. The remaining party must also prove to the lender that they can shoulder the mortgage alone.
2. How is the mortgage split if we no longer speak with each other?
In case communication between you and your ex has completely broken down, you may consider mediation or legal intervention to reach a solution.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.
Our goal is simple – to provide most up-to-date and accurate mortgage information to make your mortgage journey as stress-free as possible. Have a question? Fill up the quick form and one of our mortgage advisor will connect with you.
